LIC IPO declines after listing, know details here

 With high hopes, the mood of those investing in LIC IPO is bad today. The country’s largest life insurance company (LIC IPO Listing Update) got listed in the stock market today. 

The shares of LIC IPO were listed on the stock market at a discount. It was listed on BSE with a discount of Rs 867.20 i.e. 8.62 percent. Its issue price was Rs 949. That is, the investor had a loss of Rs 81.80 per share on one share. The company’s stock listed at Rs 872 with a discount of 8.11 percent on NSE.

LIC IPO slips in early trade

In early trade, it fell to Rs 860, down more than 10 per cent. On the other hand, there is a flood of memes on social media. People left out of taking LIC shares are enjoying a lot on weak listings. LIC’s IPO was the biggest IPO of the country till date. 

This IPO of more than Rs 21,000 crore did not get the expected response. LIC’s IPO subscribed almost three times. In this, the share of policyholders subscribed more than six times. The share of employees subscribed four times. While the anchor portion of the IPO has attracted sovereign funds from Norway and Singapore, most of the shares went to domestic mutual funds.

What was gray market premium?

Its gray market premium was falling continuously due to non-receipt of expected response from foreign investors. The company’s gray market premium the lowest among most of the recently listed IPO stocks. Experts assuming that LIC’s stock could be list at a discount of 5 to 10 percent. 

Prior to listing, LIC’s shares were trading at a discount of Rs 19 from the issue price of Rs 949 in the gray market. If you see, there was a steady decline in its price in the gray market. Initially, a premium of Rs 92 shown on this stock. Later it came at a discount.

LIC is 65-year-old company

Mumbai headquartered LIC is a well-known name in India. The company has 25 crore insurers and it accounts for about two-thirds of the insurance market. It has 2,000 branches in the country, one lakh employees and 28.60 crore policies. This 65-year-old company has assets of about $500 billion.